Auto dealers continued to decline in the profitability of urgent transformation efficiency
China Automobile Dealers Association recently released the car dealership group China 2015, hundreds of letters data, automatic size and still maintain revenue growth. At the same time, car dealers hundred slowing global growth, profitability continues to decline. In response to this situation, some car dealers through innovative models, which begins in the direction of expanding the scope of services and the development of others.
decreased earnings slowdown
Statistics show that the dealership internal polarization phenomenon automobile group is still growing, large dealer groups have significant scale and growth development. For example, CGA, the National Machine car, Zhongsheng Group, a large group and the car LSH is being ranked among the five top national distributor of automobiles. In which, topping the list of CGA income of 905 million yuan in 2014 to 93,700,000 yuan, nearly 100 million mark.
The LSHM performance is particularly noteworthy, its turnover in 2010 of 39 billion yuan in 2015 rose to 522 billion yuan, sales volume is from 2014, more than 93,000 vehicles in 2015 rose to about 120,000. Since China hundreds of Automobile Dealers list published LSHM has been among the top five, that operate only for a few dealers in the Mercedes-Benz brand, it is not easy.
At the same time, especially for large auto dealership group number and size of the global slowdown Group. Secretary General of the Association of Automobile Dealers China, Xiao Zheng in three said that in 2015 the number of dealers in hundreds of ten billion reduction in the rate of 2014, the market downturn has begun to affect the growth of the giants the auto distribution industry.
It is noteworthy that the overall domestic car dealerships profitability also showed a continued downward trend. As business margin declined 1.66 percentage points, the dealer network was affected badly, the net profit margin fell by 0.3 percentage points. From the perspective of shareholder return on investment, return distributor investment group decline is most evident in 2013 - fell by 5 percent from 2014, again he fell in 2015 by 5.4 percentage points, from 13 , 1% to 7.7%.
2014 and 2015 for two consecutive years finalists Top 100 total of 84 dealer groups, but the profitability of these distributors also face enormous challenges. Despite the adoption of corporate restructuring and improvement of organizational management, reducing some of the costs, but still a substantial decline in gross margin of 25.79%, total net profit fell more than 5 percent .
Affected hundreds dealer group as a whole the pace of expansion slowed, the growth of net assets was reduced to 7.47%, the return on investment dropped by 1.04 percentage points.
Increased polarization
Analyze the causes of the decline in profitability of car dealers, some experts said that in addition to the new fall growth in car sales, automobile exports fell by a big margin and other specific reasons, at present, the Chinese auto industry ", made slight increase" in the background, the current distributor decline in profitability is a process of industrial development have experienced, is a contradiction of all aspects of the industry chain accumulated a certain behavior release time, so participants benefit the whole industry chain will be re-balanced.
In this case, the concentration of the dealer again automotive industry intensified. In 2015, the total number of one hundred distributors sales market share of 25%, to ensure the growth of general premise revenue hundred companies to accelerate corporate restructuring, revenue sharing car in the secondary market increased by 3 points percentage.
It is understood that in 2015 hundreds of companies operating income of 12,714 yuan, an increase of 3.2% global growth has slowed; 2015 hundreds of companies in vehicle sales 6,534 million units, an increase of 5%, the rate of growth also slowing, that by replacing cars car sales 960,000 units, used car sales new contribution cars continues to grow, and in 2015 the number of outlets 4S hundred companies reached 5,526, an increase of 6.7%, the growth rate remained stable store.
The increase in industrial concentration is a manifestation of mergers and acquisitions to accelerate the pace car dealership industry. By 2015, in addition to strategic transformation, "mergers and acquisitions, cooperation," once again become the main theme of car dealers. Analysis 2015 15 Annual Report distributors Listed can be found, most of the dealers are involved in the acquisition of companies, the plan of 2016 also reflect corresponding, which was the largest catch the eyes-are two distributors already mentioned, the Group Baoxin Auto CGA and fusion.
In addition, mergers and acquisitions Yongda car in the same action over and over again. In April, Yongda Automobile announced the acquisition of 764 million yuan to Jiangsu Po Chun 4S 18 stores. Thereafter, Yongda car showroom and a series of large-scale asset restructuring news, the back door "Yangtze new material," return to the domestic capital market.
analysts of the automotive industry have said that in case of unfavorable market through the acquisition of distribution group can occupy a larger market share, which means you have the right to speak more and more market opportunities, the will of manufacturers and service market for more profits, this trend of mergers and acquisitions or long-term sustainability.
Update and development potential
The face of the market crash of mergers and acquisitions at the same time, the transformation and modernization has become an effective way to get rid of car dealerships unfavorable situation. In fact, with the rapid development of Internet, networks of cars and large data and other new technologies, not only are the distributors, including OEMs including, face re-integration of the industry chain, and the strategically and transformation of the business model in the micro-growth stage, effectively improve management and operational efficiency, and achieve profitability in the long term.
2015 annual report data of listed companies from the car dealership can be seen, although sales of new cars remains the most important source of distributors of income, but with depth and carry out the auto market related business, distributors revenue structure began to change, new car sales falling share of income, car dealer is being used by "selling products" to "selling services".
It is reported that in each car dealers business segments, business automotive aftermarket in 2015 have achieved relatively rapid growth. According to statistics, 15 listed revenue contribution business services companies averaged 9.75%, up 1.1 percentage points compared with 2014. Service, vehicle financing, used car, "Internet "and other areas also have become a new direction after the change in the auto service market.
Not only is the transformation and modernization of utility model in the "Internet +", driven by products for the automobile model promotion has also changed dramatically as before. Recently, car Tencent released "thousand cars media solutions plan" designed to play to the advantages of the polymer platform to meet the diversified needs and customized by users, whose main platform to promote content + + funds Quietly high quality, the Elite platform welfare each premium content production media benefit.
Tencent Ge Yan, deputy editor, said in the ecological chain communication brand car sales leads to actual orders of this ecological closed loop has been run through products, the future will continue to extend the line, and ultimately through the media, tracks collect clues transform the whole process transactions offline marketing.
Experts said that compared with developed countries, the maturity of the domestic automobile dealership in the field is still relatively low, there is still much room for development. In the chain of the domestic auto industry, business in the automotive aftermarket there are many to be further developed, such as cars, car leasing and so there is great potential for development, "integrated service provider "may be the car dealership future business trends.
